The US bank upped its stance for the broadband and telecoms provider to ‘neutral’ from ‘underweight’ and raised its price target to 110p from 100p. In late afternoon trading, TalkTalk shares were 6.5% higher at 119.8p.

In a note to clients, JPMorgan’s analysts said “Operating picture of the business has been mostly encouraging and good progress has been made over the course of FY18, laying the ground for growth from FY19 onwards".

They added: "We believe there is meaningful upside to consensus if Talk delivers in line with its stated ambitions... recent stake increases by key shareholders are encouraging"

Last week, Toscafund Asset Management, TalkTalk’s second largest investor, raised its stake the firm to 16.2% from 15.1%.

That came just days after TalkTalk’s founder Charles Dunstone snapped up another £600,000 worth of shares to take his holding to 28.5%.

The upgrade also comes amid a report that Dunstone is facing an investor revolt after an influential advisor services firm criticised TalkTalk’s move to place shares representing 19.99 per cent of its existing share capital earlier this year – just below the threshold that would have required investor approval.

The Daily Mail said the Investors' Association signalled serious concern over the decision and Institutional Shareholder Services has urged investors to oppose Dunstone's re-election to the company's board at this month's annual general meeting.

"Continued momentum in the first quarter of the financial year means our FY19 guidance remains unchanged, with growth in both the Retail and Wholesale broadband customer bases and headline revenue growth year-on-year"

Because shares have fallen over the past few weeks, Numis reckons the stock is now just a ‘reduce’, but it has a lot of issues with TalkTalk: namely the collapse of the B2B unit sale and rivals starting to compete better on price

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